In 2015, I started investing in EXCO Resources. EXCO is an oil and natural gas company. The company is engaged in the exploration, exploitation, acquisition, development and production of onshore United States oil and natural gas properties. In the beginning, I invested in this company for the high dividends yield, which made it attractive. Oil and natural gas is essential I thought. I started investing more when the shares went down and less when it went up. What could go wrong with my value averaging strategy? Throughout the years the shares went on a downward trend. There was even a reverse- split at some point. The company got delisted from the New York Stock Exchange. I thought that this company could get past bankruptcy. Being a naive investor at that time, I did not cut my losses at $10,000 when I had the chance. In 2019, EXCO emerged from Chapter 11 bankruptcy leaving my shares worthless. I lost about $31,000. It was a bit devastating. I felt like I lost a year of my life. Through the restructuring process, Exco is still allowed to conduct business. The lesson I learned here is to not be afraid to cut your losses. I did not let this incident stop me from investing in the stock market. I just became a smarter investor. As of today, my portfolio is up by 20%.
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